Management Fads
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Management Fad — A management fad is term that is used to describe management technique that became very popular between periods of time but lost its popularity in the long run. Management fads are most of the time introduced by management gurus, management consultants. Examples of fads are Quality Circles, Total Quality Management, and Business Process Reengineering.
Depending on the managers and how the fad is implemented, it could have either a negative or positive effect on a company.
Quality Circles – A group of employees who perform similar duties and meet at periodic intervals, often with management, to discuss work-related issues and to offer suggestions and ideas for improvements, as in production methods or quality control.
TQM – is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements.
Business Process Reengineering – is the analysis and redesign of workflow within and between enterprises.
Fad & fashion lifecycles
Lifecycle of Quality circles. 1977-1986 (Source: Abrahamson, 1996)
A management fashion is a fad that shows sign of maturing before declining. An example of a fashion would be JIT (just-in-time) inventory. It refers to a collection of practices that eliminate waste.
Deregulation
Deregulation is a fad that involves removing government regulatory controls. When a company undergoes deregulation the government reduces and removes certain restrictions. For example the United States Airline Deregulation Act of 1978 was created improve the airline industry. After the creation of the act (during the years between 1976 and 1990) there was a decreases in the average amount paid for fares and in addition there were also improvements in productivity.